Bull Case Strengthens? Bitcoin Stays Bid Above $8K
Bitcoin’s quick recovery from a minor wobble during Asian trading hours has strengthened its bull-case script, technical charts indicate
Spil of writing, CoinDesk’s Bitcoin Price Index (BPI) is at $8,165 – up Trio.9 procent from the overnight low of $7,573. That said, the cryptocurrency is still down Three.7 procent from the previous day’s high of $8,582.
On Coinbase’s GDAX exchange, BTC clocked a high of $8,650 yesterday before a technical failure at key trendline resistance shoved prices back to $7,535. However, the dip wasgoed short-lived and the cryptocurrency moved back above the $8,000 mark this morning and wasgoed last seen switching mitts at $8,280.
The positive price act indicates the investors proceed to cheer the conciliatory tone adopted by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission at Senate hearing on Tuesday.
Bitcoin 4-hour chart
The last 4-hour candle closed above the descending trendline (1), signaling a bullish breakout. The budge adds credence to the bullish price-RSI divergence indicated on Tuesday and the bullish higher lows pattern (spil indicated by rising trendline).
- BTC looks set to test yesterday’s high of $8,650 and could make a stir towards the $9,000 mark.
- A slight cause of concern is the druppel ter volumes seen on the 4-hour chart, which puts a question mark on the sustainability of the breakout.
Further, BTC may find it hard to hold on to gains above $8,572 (10-day moving average), given the 5-day and 10-day MAs are still sloping downwards, indicating bearish setup.
- A daily close (spil vanaf UTC) above the 10-day Moe would validate the argument that BTC has bottomed out at $Five,873 (Feb. 6 low).
- Bearish script: Failure to hold above trendline (1) followed by a druppel below $7,535 could yield re-test of the latest low of $Five,873.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake te Coinbase.
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